What was the total amount of prepaid expenses for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets | |||
|---|---|---|---|
| Cash and cash equivalents | $ 10,716 | $ 26,197 | |
| Accounts receivable, net | 29,858 | 25,763 | |
| Merchandise inventories, net | 56,393 | 48,576 | |
| Prepaid expenses | 4,426 | 4,665 | |
| Due from marketing fund | 668 | 1,034 | |
| Total current assets | 102,061 | 106,235 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the company's prepaid expenses totaled $4,426 in 2024. Prepaid expenses are categorized as current assets on the balance sheet. This figure reflects payments made in advance for goods or services that Batteries Plus Bulbs will utilize in the future, such as insurance premiums, rent, or advertising. These prepaid expenses are expected to be consumed or expire within one year.
For a prospective franchisee, understanding the level of prepaid expenses can offer insights into the company's operational practices and financial health. A consistent level of prepaid expenses might indicate stable, predictable operational costs. However, significant fluctuations could signal changes in business strategy or potential financial challenges.
It's important to note that prepaid expenses are a relatively small portion of Batteries Plus Bulbs' total current assets, which amounted to $102,061 in 2024. This suggests that the company's financial stability is not heavily reliant on these advance payments. Franchisees should consider this figure in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial position.